I don't think my employer is reporting my deductions to the IRS, how do i find out and what should i do?

that is illegal with severe penalties if proven
When you say he is not reporting deductions, do you mean that they are not forwarding your social security, medicare, Federal and state withholding to the proper authorities?
Did you get a W-2 for last year? If so did you get your refund or a notice of taxes due when you filed?
You could check with the Social Security Administration to see if your quarterly contributions are being made.

Why do you suspect that this is not happening?

SRM

I’m sorry i didn’t explain better, i recently moved to NC and just found a job and been working here for 2 months. I quit on Wednesday due to alot of issues with the company that i do not agree with. My boss first of all has been telling everyone in the company how much i make for starters. But i do my own timesheets every two weeks and i take out all my state, federal taxes ok along with fico and all. Well then i submit my timesheet to my boss and she then cuts me a check, but my checks do not have any deductions on them and i’m not sure if it is being turned in to the IRS. I have given her my resignation letter and let her know why i was quitting without notice and one of the reasons were is that i’m not sure if they are even reporting my deductions to the IRS. Well she called me today and told me that she is giving my last paycheck along with my resignation letter to her attorney and i’m not sure why because this letter did not say anything that was illegal on it, so it makes me think that she is doing something illegal. The only thing she said to me today was How could you blame me for something like this, not turning this into the IRS? I told her i’m not blaming you, but i just don’t see any deductions being taken out and i’m not sure you are reporting them.

I caught this early because this has happened to me before and i had to pay the IRS back alot of money.

Contact the IRS and ask them here: Withholding Compliance Questions & Answers

it’s not right also that she is giving your last check to her attorney. i don’t understand that one. she owes you that, now, also.

i had something similar happen to me once, where i worked for a company and when i left (around tax time, coinidentally) i asked for my w-2 and the boss’s wife said “you know that you are paying taxes out of what we gave you” or something to that effect. i spoke to someone at the IRS and i was told to file some form which was for this exact purpose – people who were not getting a w-2 when they were due one. there was a box where you explain the details, and of course any documents you have as proof you can attach, along with info about the employer, and you file. i got my refund, so i guess the IRS went after the owner of the company.

If you have proof that the company isn’t forwarding the taxes they collect to the IRS, you could be eligible for a reward = a percentage of the amount they recover.

Ok, thank you, but i’m not sure how to find out if they are not reporting to the IRS.

I know that the deductions are not on any of my check stubs.

@mmgreen82 http://www.irs.gov/individuals/article/0,,id=139412,00.html

Why would she give your last paycheck to her attorney? I could see maybe the letter if you made any threats or accusations, but the check is money due to you for work performed.

It could be that the company has been playing fast and loose with the IRS so they are hoping to scare you off from pursuing anything.

I suggest you go to @YARNLADY ‘s link and read the article, and possibly go to the nearest IRS office and ask them how to find out what has been submitted from the IRS.

I also suggest you figure out how not to work for companies that try to cheat anyone.

I would call the local branch of either the North Carolina Department of Revenue or the North Carolina Dept of Labor.
First, the employer can NOT retain any net pay owed to you beyond or past your USUAL and ROUTINE pay date for any reason under the NC General Statutes. I am not an attorney but I am a CFO and dealt with wage and hour disputes for close to 20 years in North Carolina. The Department of Labor can give you precise rules on this.

I have had CPA audits, Federal (IRS) audits, insurance audits and there was nothing more difficult than dealing the auditors from the North Carolina Dept of Revenue. They have offices all over the State (www.dornc.com) and if you report that you don’t believe that your employer has been withholding tax from your pay and not remitting it to the State, they will be all over this like a dog on a bone.

If you apply for unemployment, which you should do, then the Employment Security Commission will have your record of employment through the end of the first quarter (3/31/09) and WILL send your former employer a notice to confirm your earnings to which the employer must respond within ten working days. \\\
Your employer is also responible to pay State Unemployment Insurance tax on the first $16,700 that you earn in a given year based on the employer’s experience rating.

BUT
Something is puzzling me here. Why are you calculating your own time sheets, deductions and FICA and presenting the boss with amount that becomes your net pay?
That makes no sense to me.
The employer is required to tell you how many hours that you are paid for, the hourly rate, any time at premium rate (over 40 hours in a given pay period or over 80 hours (in NC) in a two week pay period if that is STANDARD within your company. The employer is also required to specify all withholding and deductions whether for taxes, insurance, uniforms, or anything else that is pay of your employment arrangement.
So if you have worked 40 hours for $9.00 per hour you are entitled to a statement that tells you that you earned $360 and 6.2% was deducted for Social Security and 1.45% for medicare and withholding etc.

You also should have filled out a W-4 and an NC-4 to tell your employer how much to witthold.

I am in Wilmington NC in the SE part of the state. Send me a private comment and if you are in this part of the state I can tell you to whom you should speak.

SRM

Also this guy’s attorney should have immediately put that check in the mail to you. Retaining it is awfully stupid.

SRM

let us know how it turns out…..

keep all your pay stubs as proof that they were withheld!
edit: just read your second post. Did you keep copies of the time sheets you submitted?
Do talk to your local labor relations board. You should get your final paycheck and if she is really submitting it to an attorney and being honest with the attorney the attorney will make sure you get paid your final paycheck (at the very least.)
Do they have other employees?

Thank you all for your information it’s all been very helpful. I keep copies of all my check stubs and timesheets yes.

Darwin, i just was working here to collect a check temporarily i wasn’t planning on staying here ok. I just moved to this area and really didn’t expect someone to do something like this. I’m clearly not an idiot i recognized something not right with this company the first week i started ok. I don’t work for people like this at all and have found a job now that is legit!

@mmgreen82 – You said “I caught this early because this has happened to me before and i had to pay the IRS back alot of money.” I assumed that you would have learned your lesson the first time it happened. If I were working for a company and sensed something was not right the first week I started, I would resign ASAP and go find something else, even if it involved saying “Would you like fries with that?”

I worked for one crooked company early on, and refuse to work for another.

The first time was nothing like this. The first time i was working in another state when i was younger and did not realize on my check stubs that they were not taking state taxes out and had to pay in.

Believe me i have been looking for something else for quite a long time honey and the way the economy is it has been very difficult to find something else that was a career and not a job!

I am just going to let them audit her company and see if they find out she hasn’t been reporting taxes. Her dumb ass, NOT mine!!! I have proof of everything. I was taking taxes out, she was not!

I did resign ASAP!!!

It was a little temporary job when i was young, the job itself did not pay me the temp agency did, therefore the temp agency wasn’t taking the taxes out.

“honey”?

I am not your “honey.”

I just became a member, due to the question being asked. I too am in a company that I noticed that nc state taxes are being withheld but minimal of only $11 federal taxes came out since april check. When I questioned my hr she claim obama gave us federal tax breaks saying “The system shows 3 allowances on federal and state withholding which should be the exact same thing on the form you completed in January.

The only correction that will be made if you elect additional tax deduction from your check.
If you elect to have additional deductuon from your check, you will have to complete a new w-2 and NC tax form.

she also emailed me with a response of: Your taxes are as you completed. Please keep in mind that the Obama stimulus plan reflects less tax taking out. Social Security and SSI people received a $250 rebate in May. I spoke to a rep. from paycycle in March about the taxes and that is what he told me. Your tax deductions that you completed are the the same”

My thing is I am young not a ssi income person think she was fast talking me. don’t think they are reporting pay or taxes She also mentioned that we are non profit organization so in addition to not paying us on time monthly taxes are less??? is that true and also can they not pay us on time by 1st of each month?

@dtwife ; you really need to talk to an accountant.

@dtwife – For those not on ssi, the amount of money being taken out of your check for federal taxes has been reduced. If that won’t be enough to cover your taxes, then you do indeed need to up the amount withheld. She was not fast-talking you. Obama’s stimulus plan is to reduce the amount of your withholding. That means “3 allowances” will result in less money taken out now than before his plan went in to effect.

As to whether they don’t have to pay you on the first of the month, that will depend on your hiring agreement.

And I have never heard of a non-profit’s employees paying less tax – the nonprofit will because of being a nonprofit, but the employees are not nonprofits.

Thank you, I will consult my CPA in addition. They get paid thru a non profit organization Missions of Peace & are certified thru Hud they claim they are never sent payments on time. This was the 1st month they mentioned delay in pay for atleast 3 months?! I heard thru other workers that they use this as an ongoing excuse I need to know the legalities of this. They claim they can give us an I.O.U. which will stand up in court if we don’t trust they will pay us?! These are some of the ridiculous things that were said to us in the meeting. Have over heard workers talking about not being paid since January?! Due to Management stating check has not came in yet?! I was never part of that because like I said this is the first month they approached me with the possibility of not paying me on time due to the fact reports are submitted in june and not paid out until middle of july into august!! They know its a recession so they say how we are lucky to have a job, “yeah with pay”, and they could lay off, “yeah if they are paying into unemployment”. Is there a way also for me to find out if they are paying into unemployment? Thank you
Just feel uneasy about this I have a family to support. I also think they want us to quit so we are not able to collect unemployment. Don’t know just uneasy about this company. I am amongst the 2 new employee’s so we are just quiet and listening to the hearsay yet it is about the come true from the meeting… Our pay day is supposed to be the frst wednesday of the month Greenville N.C. is a right to work state but does that mean they can do anything to us.

Sounds like you also need to spruce up your resume and apply for other jobs while you still have this one.